The future of a downtown restaurant may be decided behind closed
doors. Gary and Joe Walton, owners of Lizarran Tapas Restaurant
will meet with the Gilroy City Council in closed session Monday at
Gilroy City Hall to request an extension of credits for building
improvements in the form of reduced rent.
The future of a downtown restaurant may be decided behind closed doors.
Gary and Joe Walton, owners of Lizarran Tapas Restaurant will meet with the Gilroy City Council in closed session Monday at Gilroy City Hall to request an extension of credits for building improvements in the form of reduced rent.
The elimination of those credits would make it harder for the restaurant to remain open, Gary Walton said.
Walton said he’s contributed roughly $500,000 in improvements to the building, located at the corner of Sixth Street and Monterey Road, since he started leasing it from the city in 2008. He’s not asking for a refund on that, however. He just wants the city to continue offering cheaper rent so the restaurant can stay open and contribute to an attempt to revive Gilroy’s struggling downtown.
“I opened because I wanted to help downtown,” he said. “If we could be successful, hopefully it will encourage others to open downtown.”
Eric Howard, president of the Gilroy Downtown Business Association, said Lizarran was an integral part of the area, offering not just food, but also a place for meetings and entertainment.
Lizarran, which opened in November 2009, serves tapas food and holds flamenco dancing events.
“It’s very important that they’re down there,” Howard said.
City Councilman Perry Woodward said he was puzzled as to why the topic would be discussed in closed session.
“I think there’s an issue there,” Woodward said. “There’s a place for closed session, and this is a little different.”
Woodward said closed session normally occurs when the Council is discussing sending an offer or counter offer to an outside party.
With Lizarran, the business is in a public building and the city already has a lease in place with the Waltons, Woodward said. He said the Council should have an open discussion about what could be done with the property before moving to closed session, where it could formulate a reply to any offers if needed.
Walton said recent sidewalk maintenance hasn’t helped.
The work along Sixth Street has forced customers to use an alternate entrance and has “significantly affected our business.”
“We’ve had a tough time with the street work,” Walton said. “We can’t afford higher rent.”
Walton and other downtown business owners have advocated strongly for the revitalization of the area, including calling for the installation better lighting and improving the perception of downtown safety.
Walton said the high cost of rent downtown has contributed to preventing some businesses from flourishing.
“That’s why nobody’s ever made it,” he said.
Earlier this week, local chef Adam Sanchez signed a lease to open Milias Steakhouse in the former Harvest Time Restaurant building across the street from Lizarran.
Though efforts to revive downtown are picking up, losing Lizarran could be a roadblock, Howard said.
“We have a lot of momentum downtown,” he said. “What else is going to go there? If Gary can’t make it, who will?”
